What is the importance of an Appraisal / Valuation in the buying and selling process or credit application?

When someone wants to buy property using a cash or credit scheme, there is one process that must be passed, namely the Appraisal / Valuation period.

Appraisal / Valuation is a process of valuation of real objects that is carried out through an analysis process by an appraiser accredited by MAPPI (Indonesian Appraisers Association). In the context of property, Appraisal / Valuation determines the sale and purchase value of an asset in the form of a residence owned by someone if it is released to the market.

The use of an appraisal is carried out by the seller or buyer or the bank. When a prospective creditor applies for a loan with collateral in the form of property, the bank will use professional assistance as a third party to provide an estimated property Appraisal / Valuation.

The aim is to prove or confirm the real condition of the building in the field with credit application documents as well as to measure the selling value of the house. What should we know about the Appraisal / Valuation process?

Terms and completeness

There are several documents required for the Appraisal / Valuation in the form of; a copy of personal identity (KTP, passport, etc.), a copy of NPWP (Taxpayer Identification Number), and a copy of ownership rights.

If all document requirements are complete, the property owner/applicant can directly contact the BVR Appraisal to conduct an Appraisal / Valuation of your property.

Factors that can affect property value

Before starting the Appraisal / Valuation, the property owner/applicant must know several factors that become the standard in assigning a range of values ​​to a property.

First seen from the Number of Tax (NJOP) listed in the attachment of Property Tax (PBB). But it is not absolutely determinant of your property value. Valuers often use additional factors with a market approach or a cost approach.

The next factor is the location of the property. For example, properties located in strategic areas have different selling prices compared to properties located in areas with difficult access, are prone to disasters, and so on.

Ease of access is also an appraisal factor. With the example of several residences with narrow road access and difficulty to pass by vehicles, it can reduce the selling price valuation.

Not only that, other factors such as being prone to flooding or landslides or being near a grave and having had problems with bank credit. This factor is very helpful for the property owner / applicant in making decisions

Increase appraisal value

So, what if you want to increase the appraisal value of a property? The first step, make sure that before prospective analysts arrive, you have found out professional credibility through their professional background and experience. Click the link below to find out about BVR Appraisal, Consulting & Research

Next, check the state of the property again. Make sure you check every corner of the property to make sure there is no damaged furniture such as a perforated wall. Checking the interior of the property can support the value of the building.

Also, the determining factor of a property’s appraisal is that it looks more prominent or appears different than the surrounding area. This is a good signal regarding the selling price of the property. Therefore, you can try to do a little renovation in the form of painting or beautifying the garden area and yard so that it is neat and increases the appraisal value.

The final factor, if the property seller plans to release all the contents of the property when submitting a guarantee, make sure all the equipment in it is functioning properly. Electronic devices such as air conditioners that work perfectly, leave a good impression on property appraisers.

So, it is important to go through the appraisal / valuation period to know well all the fittings of the house. This facilitates the credit application process or your dream of owning property can be realized soon.